Fastenal jumps to all-time highs following Q1 report

Apr. 11, 2019 2:26 PM ETFastenal Company (FAST), XLI, VIS, FIDU, IVES, IYJ, FXR, AIRR, RGI, UXIXLI, IYJ, VIS, FAST, UXI, RGI, FXR, FIDU, AIRR, IVESBy: Carl Surran, SA News Editor2 Comments
  • Fastenal (FAST +4.6%) is surging after its narrow Q1 earnings beat, but investors are focusing on the company’s stabilizing gross margin and improving operating margin.
  • FAST reported gross margin slipped to 47.7% from 48.8% in the year-ago quarter but analysts think the downtrend may have run its course, and operating margin rose 20 bps Y/Y to 20%, indicating an effective effort in managing costs.
  • Demand also remains healthy, as FAST delivered its eighth straight quarter of double-digit revenue growth; for Q1, net sales increased ~10% to $1.31B, in line with expectations.
  • Wells Fargo's Allison Polinak says FAST's March sales ended the quarter on a positive note, and "importantly... the spread between national account and non-national account growth narrowed to 11% vs. 13% previously. We view this as a positive indicator for the macro environment," showing that small businesses are growing as much as FAST's large multinational customers.
  • FAST has exposure to many cyclical, economically-sensitive industries such as construction, original equipment manufacturers, railroads, oil and gas, and transportation, and 85% of its business is generated from the U.S.

Recommended For You

Comments (2)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.